Foreign currency convertible bonds and global depository receipts.
India has been utilizing foreign investment since the time of the British Raj. Even though the post-independence legislation agreed that Indian industries needed the influx of foreign capital, as well as technology investments, some institutional controls and complex legal control, made it difficult to implement them.
However, when the 1991 liberalization policy came, there were incentives designed to attract overseas corporate bodies and non-resident Indians to flood many sectors with foreign direct investments. One year later, solid and trusted Indian companies were allowed to issue foreign currency convertible bonds (FCCBs) or global depository receipts (GDR). However, the government still places many restrictions on how the companies will issue these instruments and how they will use the proceeds generated from them.
As the years went by, the government gradually lifted many restrictions on FCCB and GDR. Today, Indian companies who are listed in the Stock exchange can issue these two instruments with little restrictions on the proceeds.
Before you engage in issuing GDR or FCCB, you need one of the leading advisers in the market to guide you. This is where Lex India comes in. We have handled many FCCB and GDR issues for years now. With our wealth of experience in handling the issues of these instruments, we can guide you to a successful transaction.
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